Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: A taxpayer has asked whether rumoured payments of tax by XXXXXXXXXX would be a taxable benefit to XXXXXXXXXX .
Position: Can not discuss as we are bound by confidentiality.
Reasons: Subsection 241(1) of the Act is clear and subsections 241(4) and (5) do not provide an exception in this instance.
Signed on February 19, 2002
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Elinor Caplan, Minister of National Revenue, has asked me to reply to your letter of December 22, 2001, addressed to her predecessor, the Honourable Martin Cauchon, concerning pension payments by XXXXXXXXXX.
The confidentiality provisions of the Income Tax Act preclude me from disclosing information about any taxpayer, including a registered pension plan. These confidentiality provisions of the Act are fundamental to the integrity of our self-assessment system and the Canada Customs and Revenue Agency (CCRA) takes its responsibility of maintaining confidentiality very seriously.
On a general level, however, the determination of whether a payment on behalf of an employee would constitute income from an office or employment is a question of fact. Normally, where an employer makes a payment for an employee, including the payment of taxes, the amount of the payment must be included in the employee's income.
The CCRA is committed to applying the tax legislation consistently and fairly, which includes collecting the full amount of tax owing under the law. In this regard, it is our mandate to treat all taxpayers equally. The CCRA utilizes the same criteria to determine the tax liability of politicians as are used for all other taxpayers.
Thank you for bringing your concerns to the attention of the CCRA.
Yours sincerely,
Bill McCloskey
Assistant Commissioner
Policy and Legislation Branch
Phil Kohnen
957-2093
January 29, 2002
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